ZCE cotton futures peaked down around the G20 Summit, in addition to disillusion of favorable news of negotiations, fundamental performed subdued. There was cotton yarn market situation after the G20 summit.
1. China
In terms of inventory, due to downstream replenishment after the G20 summit, cotton yarn market improved, but the continuity was not enough. It was a speculative replenishment of downstream mills that resulted in tolerable destocking rate of yarn mills and imported yarn traders. After ZCE cotton futures fell again on Jul 9, downstream mills resumed to purchase stocks passively, and cotton yarn sales were sluggish. Yarn mill inventory was still at high level, and destocking still needed time.